London: The Chancellor has put “stability and fairness” at the heart of yesterday's budget and feels that the UK is in a good position to ride the threatening tide of economic uncertainty.
Alistair Darling is understood to have had little room to manoeuvre within his budget, though he did attempt to tackle some environmental issues.
Single-use carrier bags
Referring to reducing the use of single-use carrier bags, the budget statement said, “the Climate Change Bill will legislate so that, if there is not sufficient progress on a voluntary basis by the end of the year, the Government can exercise powers early next year to impose a charge on these bags".
Though the Chancellor threatened to take action on carrier bags unless the retailers get to grips with the problem, this is really of relatively minor significance. The bags certainly look unsightly and are a nuisance when blowing around the countryside, but will be sorely missed by millions of householders who use them to line their waste bins. It is bad news for manufacturers of the plastic carriers, but it will be good news for manufacturers of bin liners as the public seek alternatives.
Of course plastic bags ending up in landfill is a problem, though as time progresses local authorities are developing a variety of alternative treatments to obtain energy from wastes – including waste plastics. The number of bags being deposited in landfill will diminish over time in any event as local authorities continue to divert waste from landfill.
Plastic bags are high profile, but should perhaps have been lower down the list of environmental priorities for the Government. Nevertheless the inevitable reduction in use of these bags will be welcomed by many people and organisations.
Michael Grimes, head of waste at international law firm Eversheds, commented:
“There is currently a London Councils' Bill to impose an outright ban on throw away bags in the capital. London Councils’ highlights that a public consultation supported its initiative and it flags the environmental ‘menace’ of shopping bags. The controversial bill has been opposed by the British Retail Consortium, that argues the environmental benefits are not so clear cut, pointing to increases in the use of alternative, equally harmful bags. It remains to be seen how such a ban could be enforced on our streets, but if London is a success, the nation may follow.
“There are also issues about whether plastics bags are better or worse in resource terms than paper ones and about the substitution of light weight plastic bags with, say, bin bags. Like all laws the definitions will be important and people will try to test the boundaries of what is or is not allowed. That’s why winning the argument about what is the right thing to do is important. If there is a significant reduction in bag use no law would be needed.”
Landfill tax
The £8 per tonne escalator for landfill tax on active wastes has been confirmed by the Treasury and will be effective from 1 April 2008, with additional similar increases through to at least 2010/11. The inactive rate is to be increased 50p to £2.50 per tonne, though contrary to last year's statement, this tax will be frozen at that rate in 2009/10. The chancellor considers that landfill tax – working with other measures – has been successful with overall quantities of waste recorded at landfill sites registered for the tax falling by around 26 per cent, meaning that the UK is on track to meet its 2010 targets under the Landfill Directive.
Brownfield sites
As part of measures to reform tax incentives for brownfield sites, the Government is to have a phased removal of the exemption from landfill tax for waste arising from the clearance of contaminated land, to be phased out by 1 April, 2012. The treasury says that revenue arising because of this exemption removal would be used to extend land remediation relief.
The landfill communities fund
Since its introduction in 1996, the Landfill Communities Fund has enabled funding to the tune of over £800 million for over 22,000 projects to improve the environment near landfill sites.
The fund is to be increased by £5 million to £70 million for the year 2008-09 and regulations will be amended to “reduce the administrative burden on environmental bodies by relaxing their reporting requirements”. Power to revoke the enrolment of environmental bodies is to be transferred from the fund's regulator to HMRC (HM Revenue and Customs).